Serabi Gold plc ("Serabi" or the "Company"): Proposals for the Conditional Subscription for 270,000,000 Ordinary Shares at 6 Pence per Share; Approval of a Waiver of an Obligation Under Rule 9 of the City Code on Takeovers and Mergers; Notice of General M

LONDON -- (Marketwire) -- 12/11/12 -- Serabi Gold plc (AIM: SRB) (TSX: SBI), the Brazilian focused gold exploration and development company, advises that, following a previous announcement that on 1 October 2012 that Company had entered into a conditional underwritten share placement to raise gross proceeds of UK£ 16,2 million, it has now issued and posted to all shareholders notice of a General Meeting of shareholders to approve a waiver of an obligation under Rule 9 of the City Code on Takeovers and Mergers ("the Waiver"). The General Meeting is scheduled to take place at 10.00 am on 16 January 2013 at the offices of Farrer & Co LLP at 66 Lincoln's Inn Fields, London WC2A 3LH.

1. INTRODUCTIONOn 1 October 2012, the Board announced that it had entered into a conditional subscription agreement with Fratelli Investments to subscribe for and underwrite a placement of new Ordinary Shares to raise £ 16.2 million to finance the development and start-up of underground mining operations at its Palito gold mine.

Further details of the Subscription Agreement and Loan Agreement together with the Notice of General Meeting to approve the Waiver are contained in the circular being posted to Shareholders today (the "Document"). The Document and this announcement have been posted on the Company's website at www.serabigold.com and are also available on SEDAR at www.sedar.com.

Fratelli Investments and parties acting in concert with it, currently owns 19,257,317 Existing Ordinary Shares which represents 21.1 per cent. of the Existing Ordinary Share Capital. In the event that there are no other subscribers for the new Ordinary Shares, the Concert Party will on Completion be interested in up to a maximum of 291,744,816 Ordinary Shares, representing 80.2 per cent. of the Second Diluted Enlarged Ordinary Share Capital. Without a waiver of the obligations under Rule 9 of the City Code, the Subscription could require the Concert Party to make a general offer for the entire issued and to be issued share capital of the Company not already held by the Concert Party. The Panel has agreed with the Company to grant such a waiver, subject to the passing at the General Meeting by Independent Shareholders (being Shareholders other than the members of the Concert Party) of the Whitewash Resolution, to be taken on a poll.

2. THE SUBSCRIPTIONOn 1 October 2012, the Company entered into a conditional subscription agreement with Fratelli Investments to subscribe for and underwrite a placement of new Ordinary Shares to raise £ 16.2 million to finance the development and start-up of underground mining operations at its Palito gold mine. The investment by Fratelli Investments will take the form of:

(a) A subscription for 90,403,000 new Ordinary Shares at the Subscription Price of 6 pence per new Ordinary Share which will, in aggregate with Fratelli Investments' existing shareholding, provide Fratelli Investments with 29.9 per cent. of the Enlarged Ordinary Share Capital of the Company immediately on Completion; and

(b) A conditional subscription for up to a further 179,597,000 new Ordinary Shares at a subscription price of 6 pence per new Ordinary Share, such number to be reduced by any subscriptions for new Ordinary Shares from third party investors.

The Subscription Price of 6 pence per new Ordinary Share represented a 25 per cent. discount to the 30 day volume weighted average closing mid-market price of an Ordinary Share as at 30 September 2012. Completion of the Subscription is conditional upon:

(a) Approval of the Independent Shareholders of the Company on a poll at a general meeting of the waiver of any obligations of Fratelli Investments to make a general offer to Shareholders pursuant to Rule 9 of the City Code; and
(b) Admission of the new Ordinary Shares to AIM and the TSX.

Under the Subscription Agreement, Fratelli Investments may notify Serabi that it wishes to terminate the Subscription Agreement with immediate effect in the event that:

(a) Serabi notifies Fratelli Investments that there is a material adverse change in the financial condition of the Company and/or any of its subsidiaries; or
(b) If an event of default occurs under the Loan Agreement.

The Company has additionally undertaken to Fratelli Investments under the Subscription Agreement to procure that each member of the Serabi Group shall, prior to completion of the Subscription, except with the prior written consent of Fratelli Investments (such consent not to be unreasonably withheld or delayed):

(a) Until the earlier of:

(i) the completion of the Subscription;

(ii) the voting down of the whitewash resolution in the Document; and

(iii) such date that the Board of the Company reasonably believes that the whitewash resolution in the Document will be voted down

not create, allot or issue (or enter into any negotiations or reach any agreement (legally or otherwise) to create, allot or issue) any shares or securities or grant any option, warrant or right to subscribe or convert any securities into shares, or require the allotment or issue of any such shares or securities whether conditional or otherwise at an issue price of less than 6 pence per Ordinary Share;

(b) Not dispose of the whole or part of its undertaking or enter into any negotiations, or reach any agreement, with regard to any such disposal (whether conditional or otherwise). For the avoidance of doubt, this shall include not entering into or agreeing to enter into any off-take or other agreement relating to any future production of the Group; and

(c) Not enter into any contract or arrangement that is not on an arm's length basis.

The Company has entered into conditional agreements with brokers to use their reasonable endeavours to place the Third Party Shares with institutional and other investors (other than the Concert Party) at the Subscription Price. Further details of these arrangements are set out in paragraph 6.1.10 of Part IV of the Document.

Immediately on completion of the Subscription, Fratelli Investments will receive an underwriting fee to be satisfied by the issue of New Warrants to subscribe for new Ordinary Shares. The number of New Warrants will be calculated on the basis of one New Warrant for every ten Third Party Shares subscribed for. The New Warrants will be exercisable at a subscription price of 10 pence per Ordinary Share for a period of two years from the date of completion of the Subscription.

3. THE LOAN AGREEMENTFratelli Investments has also provided on 1 October 2012 an interim secured short term loan facility of US$6 million (equivalent to approximately £ 3.8 million at the exchange rate of £ 1:US$1.59 as at 2 October 2012) to the Company to provide additional working capital to the Company and to enable the Company to commence the necessary mine development and plant refurbishment works immediately. Drawdown under the Loan Agreement was subject to a number of conditions precedent including the execution of the security agreements. As at 6 December 2012, the last practicable date prior to the publication of this announcement, US$4.5 million had been drawn down under the short term loan facility. The Company intends that the Loan Agreement will be repaid from the proceeds of the Subscription. The Loan Agreement is for a period of six months and for a maximum of US$6 million and will be drawn-down in up to 4 separate instalments. Interest is chargeable at the rate of 12 per cent. per annum and the facility will attract a 3 per cent. arrangement fee. In the event that the funds advanced under the Loan Agreement are repaid prior to the end of the loan period, a penalty will accrue equivalent to the lower of 3 months' interest or the remaining interest that would be chargeable to the end of the loan period, which is expected to amount to US$226,444 on repayment of the Loan Agreement following completion of the Subscription. The Loan Agreement is secured against the entire share capital of Serabi Mining Limited a subsidiary of Serabi and the 99.99 per cent. shareholder of Serabi Mineração SA, which is the licence holder for the Palito Mine. In addition, the Company has also made a charge in favour of Fratelli Investments over all current and future sums owed by Serabi Mineração SA to Serabi Gold plc.

4. RULE 9 OF THE TAKEOVER CODEThe Subscription gives rise to certain considerations under the Takeover Code. Brief details of the Panel, the Takeover Code and the protections they afford are set out below. The Takeover Code is issued and administered by the Panel. The Takeover Code applies to all takeover and merger transactions, however effected, where the offeree company is, inter alia, a listed or unlisted public company with its registered offices and its place of central management and control in the United Kingdom. The Company is such a company and its Shareholders are entitled to the protections afforded by the Takeover Code.

Under Rule 9 of the Takeover Code, where any person acquires, whether by a single transaction or a series of transactions over a period of time, interests in securities which (taken together with securities in which he is already interested and in which persons acting in concert with him are interested) carry 30 per cent. or more of the voting rights of a company which is subject to the Takeover Code, that person is normally required by the Panel to make a general offer to all the remaining shareholders of that company to acquire their shares. Similarly, when any person individually or a group of persons acting in concert, already holds interests in securities which in aggregate carry not less than 30 per cent. of the voting rights of such a company but does not hold shares carrying more than 50 per cent. of such voting rights, that person may not normally acquire further securities without making a general offer to the shareholders of that company to acquire their shares. An offer under Rule 9 must be made in cash and at the highest price paid by the person required to make the offer, or any person acting in concert with him, for any interest in shares of the company during the 12 months prior to the announcement of the offer.

For the purposes of the Takeover Code, Fratelli Investments together with its Connected Persons and other persons acting in concert with it, full details of whom are set out in the Document, form the Concert Party. The Concert Party is currently beneficially interested in 19,257,317 Ordinary Shares, representing approximately 21.1 per cent. of the Existing Ordinary Share Capital. Immediately following completion of the Subscription, the minimum and maximum interests of the Concert Party are set out below:

CIO, CTO & Developer Resources

Maximum
Minimum Maximum Minimum Interest
Interest Interest Interest in the
in in in Diluted Second
Enlarged Enlarged Enlarged Diluted
Ordinary Ordinary Ordinary Enlarged
Concert Party Member Share Share Share Ordinary
Capital on Capital on Capital on Share
Completion Completion Completion Capital on
Completion
---------- ---------- ---------- ----------
(Notes (Notes (Notes (Notes
3,6) 3,7) 4,6) 5,7)
---------- ---------- ---------- ----------
Fratelli Investments Limited
(Note 1) 29.90% 79.61% 33.60% 79.69%
Piero Solari Donaggio (Note
2) - - - -
Sandro Solari Donaggio (Note
2) - - - -
Carlo Solari Donaggio (Note
2) - - - -
Nicolas Bañados (Note 8) 0.44% 0.44% 0.48% 0.50%
Jorge Arancibia Pascal (Note
9) 0.01% 0.01% 0.01% 0.01%
Total 30.35% 80.07% 34.08% 80.20%
---------- ---------- ---------- ----------
Note 1 Fratelli Investments Limited is a 99.9 per cent. owned subsidiary of
Inversiones Menevado Dos Limitada which is itself a 99.97 per cent.
owned subsidiary of Inversiones Menevado Limitada which is itself a
96.92 per cent. owned subsidiary of Inversiones Megeve Capital
Limitada. The shareholders of Inversiones Megeve Capital Limitada
comprise Asesorias e Inversiones Barolo Limitada, which is controlled
by Piero Solari Donaggio and his dependants, Asesorias e Inversiones
Brunello Limitada, which is controlled by Sandro Solari Donaggio and
his dependants and Asesorias e Inversiones Sangiovese Limitada, which
is controlled by Carlo Solari Donaggio and his dependants. Further
details are set out below in paragraph 3 of Part B of this Part II of
the Document.
Note 2 Piero Solari Donaggio, Sandro Solari Donaggio and Carlo Solari
Donaggio are the sole directors and the ultimate beneficial
shareholders of Fratelli Investments.
Note 3 The Enlarged Ordinary Share Capital comprises the Existing Ordinary
Shares and the Subscription Shares.
Note 4 The Diluted Enlarged Ordinary Share Capital comprises the Existing
Ordinary Shares, the Subscription Shares, the new Ordinary Shares
issued on exercise of the Existing Warrants and the new Ordinary
Shares issued on exercise of the New Warrants.
Note 5 The Second Diluted Enlarged Ordinary Share Capital comprises the
Existing Ordinary Shares, the Subscription Shares and the new
Ordinary Shares issued on exercise of the Existing Warrants.
Note 6 Assumes that third parties subscribe for all the Third Party Shares
and that Fratelli Investments subscribes for the Minimum Subscription
and receives the maximum number of New Warrants as an underwriting
fee.
Note 7 Assumes that there are no third party subscribers for the
Subscription Shares and Fratelli Investments therefore subscribes for
all the Subscription Shares issued by the Company pursuant to the
Subscription Agreement.
Note 8 Nicolas Banados, an attorney-in-fact of Fratelli Investments,
directly owns 144,282 Ordinary Shares. In addition, Nicolas Banados
is the beneficial owner of 50 per cent. of the share capital of
Asesorias e Inversiones Asturias Limitada which beneficially owns 25
per cent. of the units in Fondo de Inversion Privado Santa Monica.
Asesorias e Inversiones Asturias Limitada is interested in 159,665
Ordinary Shares and Fondo de Inversion Privado Santa Monica is
interested in 1,300,000 Ordinary Shares and 216,666 Existing
Warrants. Accordingly, Nicolas Banados is interested in aggregate,
directly and indirectly, in 1,603,947 Ordinary Shares and 216,666
Existing Warrants.
Note 9 Jorge Arancibia Pascal, an attorney-in-fact of Fratelli Investments,
is the beneficial owner of 85 per cent. of the share capital of
Asesorias e Inversiones Hipa Limitada which is interested in 37,370
Ordinary Shares.

Full details of the Concert Party's interest are set out in Part A of Part II of the Document.

As set out in Part D of Part II of the Document, the Concert Party currently own 2,487,499 Existing Warrants which were subscribed for by the Concert Party pursuant to the share placement by the Company on 24 January 2012. At such time the Concert Party's maximum interest in Serabi, assuming full exercise of its holding of the Existing Warrants, would have been less than 29.9 per cent. Accordingly, there was no requirement at the time of issue of the Existing Warrants to the Concert Party to seek a waiver from the Panel as there would have been no obligation to make a mandatory offer for the Company following the exercise of the Existing Warrants. Furthermore, the new Ordinary Shares to be issued on the exercise of the Existing Warrants on completion of the Proposals as set out in the Document, would represent only 1 per cent. of the Diluted Enlarged Ordinary Share Capital. Accordingly, the Independent Directors, who have been so advised by Beaumont Cornish, believe that the inclusion of the Existing Warrants within the Waiver is fair and reasonable and in the best interests of the Independent Shareholders and the Company as a whole. In giving its advice, Beaumont Cornish has taken account of the commercial assessments of the Independent Directors.

The Takeover Panel has agreed to waive the obligation of the Concert Party to make a general offer that would otherwise arise as a result of its participation in the Subscription, subject to the approval of Independent Shareholders. Accordingly, the Resolution is being proposed at the General Meeting to approve the Waiver and will be taken on a poll. No member of the Concert Party will be entitled to vote on that resolution and accordingly no member of the Concert Party will do so.

If on Completion of Subscription the Concert Party holds less than 50 per cent. of the Company's voting share capital but more than 30 per cent., any further increases in the Concert Party's interests in Ordinary Shares following Completion will be subject to the provisions of Rule 9.

If however, on Completion of the Subscription the Concert Party holds more than 50 per cent. of the Company's voting share capital, the Concert Party may be able to increase its aggregate shareholding in the Company without incurring any obligation under Rule 9 to make a general offer to the Company's other Shareholders. Under the Takeover Code, whilst each member of the Concert Party continues to be treated as acting in concert, each member will be able to increase further his respective percentage shareholding in the voting rights of the Company without incurring an obligation under Rule 9 to make a general offer to Shareholders to acquire the entire issued share capital of the Company. However, individual members of the Concert Party will not be able to increase their percentage shareholding through or between a Rule 9 threshold, without the consent of the Panel.

5. INTENTIONS OF THE CONCERT PARTYOther than the right of Fratelli Investments to appoint up to a further two non-executive directors to the Board of the Company pursuant to the Subscription Agreement, the Concert Party is not intending to seek any changes to the Board and has confirmed that it is its intention that, following the increase in its shareholding as a result of its participation in the Subscription, the business of the Company will be continued in substantially the same manner as it is at present, with no major changes. With this in mind, there will be no repercussions on employment or the location of the Company's places of business and no redeployment of the Company's fixed assets. The Concert Party is also not intending to prejudice the existing employment rights, including pension rights, of any of the employees or management of the Group nor to procure any material change in the conditions of employment of any such employees or management or to take any steps to amend the Company's share trading facilities in force at the date of the Document.

The Company, Beaumont Cornish and Fratelli Investments have entered into the Lock-in and Relationship Agreement dated 10 December 2012 which governs the relationship between the Company and Fratelli Investments and the acquisition and disposal and dealings in Ordinary Shares following Admission by members of Fratelli Investments. Details of the Lock-in and Relationship Agreement are set out in paragraph 6.1.7 of Part IV of the Document.

6. RELATED PARTY TRANSACTIONSAIM
As Fratelli Investments is currently interested in more than 10 per cent. of the issued ordinary share capital of the Company, the Subscription Agreement and the Lock-in and Relationship Agreement are related party transactions for the purposes of Rule 13 of the AIM Rules. For the purposes of the AIM Rules, The Directors of Serabi consider, having consulted with the Company's nominated adviser, Beaumont Cornish, that the terms of the Subscription Agreement and the Lock-in and Relationship Agreement are fair and reasonable insofar as Shareholders are concerned. The Directors have taken into account in particular that the Subscription Agreement conditionally provides the full funding of US$18 million identified by the preliminary economic assessment, issued on 29 June 2012, as being the capital required to reopen the Palito mine as well as additional working capital for the Company until such time as cash flow is generated from the Palito mine. Furthermore, proceeds from the Subscription Agreement will enable the Company to repay amounts drawn down under the Loan Agreement.

TSX
As a result of Fratelli Investments' shareholding in Serabi, the Subscription Agreement and the Loan Agreement are related party transactions for Serabi under Canadian securities laws pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). In accordance with MI 61-101, Serabi is relying on the exemption from the requirement to obtain minority shareholder approval of the Subscription and the Loan Agreement and the requirement to obtain a formal valuation in connection with the Subscription available for transactions supported by an arm's length shareholder that holds at least 20 per cent. of the Existing Ordinary Share Capital and a greater shareholding interest that that of the Concert Party. In particular, Eldorado Gold Corporation which is interested 21,340,000 Ordinary Shares, equivalent to approximately 23.38 per cent. of Existing Ordinary Share Capital, confirmed to Serabi that it supported the Subscription and the Loan Agreement.

7. ADMISSION TO AIM Application will be made for the Subscription Shares to be admitted to trading on AIM. It is expected that Admission will become effective and dealings in the Subscription Shares will commence on 22 January 2013. The new Ordinary Shares will when issued and fully paid, rank in all other respects pari passu with the Existing Ordinary Shares in issue including the right to receive all dividends and other distributions declared, made or paid after the date of their issue.

8. GENERAL MEETINGThe Document contains the Notice of General Meeting. The General Meeting is to be held at Farrer & Co LLP at 66 Lincoln's Inn Fields, London, WC2A 3LH at 10.00 a.m. on 16 January 2013. At this meeting, the Resolution to approve the Waiver will be proposed as an ordinary resolution to be taken on a poll by Independent Shareholders voting in person or by proxy at the General Meeting. Shareholders should note that members of the Concert Party will not be permitted to vote at the General Meeting.

9. RECOMMENDATIONAs Eduardo Rosselot, a non-executive director of the Company, is the nominated Board appointee of Fratelli Investments, he is not independent for the purposes of the recommendation. The Independent Directors therefore, comprising the Board other than Eduardo Rosselot, having been so advised by Beaumont Cornish, consider that the Proposals, including the Waiver, are fair and reasonable and in the best interests of the Independent Shareholders and the Company as a whole. In giving its advice, Beaumont Cornish has taken account of the commercial assessments of the Independent Directors. Accordingly, the Independent Directors unanimously recommend Independent Shareholders to vote in favour of the Whitewash Resolution to be proposed on a poll at the General Meeting as the Independent Directors intend to do in respect of their own beneficial holdings which amount, in aggregate, to 1,162,973 Existing Ordinary Shares, representing approximately 1.37 per cent. of the Existing Ordinary Share capital.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this news release.

Beaumont Cornish, which is authorised and regulated in the United Kingdom by the FSA, is acting for the Company and no one else in connection with the Proposals and will not be responsible to any person other than the Company for providing the regulatory and legal protections afforded to clients of Beaumont Cornish nor for providing advice in relation to the contents of this announcement or the Document or any matter, transaction or arrangement referred to in it. Beaumont Cornish has not authorised the contents of, or any part of, this announcement or the Document and no liability whatsoever is accepted by Beaumont Cornish for the accuracy of any information or opinion contained in this announcement or the Document or for the omission of any information.

Responsibility StatementThe Directors of Serabi accept responsibility for the information contained in this announcement including individual and collective responsibility for compliance with the AIM Rules, save for the information concerning the Concert Party (for which each member of the Concert Party and the directors of Fratelli Investments are responsible) and the recommendation set out in paragraph 9 (for which the Independent Directors are solely responsible). To the best of the knowledge and belief of the Directors (who have taken reasonable care to ensure that such is the case) the information contained in this announcement for which they are responsible (as above) is in accordance with the facts and there are no other facts the omission of which is likely to affect the import of such information.

Each member of the Concert Party along with the directors of Fratelli Investments accepts responsibility for the information contained in this announcement relating to the Concert Party or otherwise expressly referable to the Concert Party. To the best of the knowledge and belief of each member of the Concert Party along with the directors of Fratelli Investments (who have taken all reasonable care to ensure such is the case) the information contained in this announcement for which they are responsible is in accordance with the facts and there are no other facts the omission of which is likely to affect the import of such information.

Qualified Persons StatementThe scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 25 years' experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognizing him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Overseas ShareholdersThe Ordinary Shares will not be registered under the United States Securities Act of 1933, as amended, or under the securities legislation of, or with any securities regulatory authority of, any state or other jurisdiction of the United States or under the applicable securities laws of the Republic of South Africa, Australia, or Japan. Accordingly, subject to certain exceptions, the Ordinary Shares may not be offered or sold, directly or indirectly, in or into the United States, the Republic of South Africa, Australia, or Japan or to or for the account or benefit of any national, resident or citizen of the Republic of South Africa, Australia, or Japan or any person located in the United States. This announcement does not constitute an offer to issue or sell, or the solicitation of an offer to subscribe for or buy, any of the Ordinary Shares to any person in any jurisdiction to whom it is unlawful to make such offer or solicitation in such jurisdiction. The distribution of this announcement in certain jurisdictions may be restricted by law. In particular, this announcement should not be distributed, published, reproduced or otherwise made available in whole or in part, or disclosed by recipients to any other person, and in particular, should not be distributed, subject to certain exceptions, to persons with addresses in the United States of America, the Republic of South Africa, Australia, or Japan. No action has been taken by the Company or by Beaumont Cornish that would permit a public offer of any of the Ordinary Shares or possession or distribution of this announcement where action for that purpose is required. Persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdictions.

Forward Looking StatementsCertain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as "believe", "could", "should" "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

APPENDIX 1
SUBSCRIPTION STATISTICS
Number of Ordinary Shares in issue at the date of this 91,268,529
announcement
Number of new Ordinary Shares to be issued pursuant to the 270,000,000
Subscription
Issue Price per Subscription Share 6 pence
Gross proceeds of the Subscription £ 16.2 million
Estimated net proceeds of the Subscription (excluding any £ 16.0 million
broker commissions)
Enlarged Ordinary Share Capital following Completion 361,268,529
Number of new Ordinary Shares to be issued pursuant to the 74.7 per cent.
Subscription as a percentage of the Enlarged Ordinary Share
Capital
Market capitalisation of the Company at the Subscription £ 21.7 million
Price following Completion
EXPECTED TIMETABLE OF PRINCIPAL EVENTS
Event Date
Record Date for Canadian shareholders 12 December 2012
Latest time and date for receipt of Proxy 10.00 a.m. on 14 January 2013
Forms in respect of the General Meeting
Time and date of General Meeting 10.00 a.m. on 16 January 2013
Admission effective and commencement of 8.00 a.m. on 22 January 2013
dealings in the Subscription Shares on AIM
CREST accounts credited for new Ordinary 22 January 2013
Shares in uncertificated form
Despatch of definitive share certificates for 30 January 2013
the new Ordinary Shares in certificated form
by no later than
(1) All times shown in this announcement are London GMT times unless
otherwise stated. The dates and times given are indicative only and are
based on the Company's current expectations and may be subject to
change. If any of the times and/or dates above change the revised times
and/or dates will be notified to Shareholders by announcement through
the Regulatory News Service of the London Stock Exchange.
(2) If the General Meeting is adjourned, the latest time and date for
receipt of Forms of Proxy for the adjourned meeting will be notified to
Shareholders by announcement through the Regulatory News Service of the
London Stock Exchange.
APPENDIX 2
DEFINITIONS
The following words and expressions apply throughout this announcement and
the Document unless the context requires otherwise:
"2009 Annual Report" the Company's annual report and accounts for the
financial year ended 31 December 2009
"2010 Annual Report" the Company's annual report and accounts for the
financial year ended 31 December 2010
"2011 Annual Report" the Company's annual report and accounts for the
financial year ended 31 December 2011
"Act" Companies Act 2006 (as amended)
"Admission" admission of the Subscription Shares to trading on AIM
becoming effective in accordance with the AIM Rules for
Companies
"AIM" AIM, a market of that name operated by the London Stock
Exchange
"AIM Rules for the rules which set out the obligations and
Companies" responsibilities in relation to companies whose shares
are admitted to AIM as published by the London Stock
Exchange from time to time
"AIM Rules for the rules which set out the eligibility, obligations
Nominated Advisers" and certain disciplinary matters in relation to
nominated advisers as published by the London Stock
Exchange from time to time
"Beaumont Cornish" Beaumont Cornish Limited whose registered office is at
Cedar House, Sandbrook Business Park, Sandbrook Way,
Rochdale, OL11 1LQ
"Board" or the existing directors of the Company whose names
"Directors" appear on page 5 of the Document
"Business Day" any day (other than a Saturday, Sunday or a public
holiday) on which banks are generally open in the City
of London for the transaction of normal banking
business
"certificated" or a share or other security recorded on the relevant
"in certificated register of the relevant company as being held in
form" certificated form and title to which may be transferred
by means of a stock transfer form
"City Code" or the City Code on Takeovers and Mergers, as updated from
"Takeover Code" time to time
"Company" or Serabi Gold plc
"Serabi"
"Completion" the Subscription being completed and Admission taking
place
"Concert Party" Fratelli Investments Limited, its Connected Persons and
other persons acting in concert with it, as described
in Part II of the Document
"Connected Persons" has the meaning set out in section 252 and section 254
of the Act and includes a spouse, children under 18 and
any company in which the relevant person is interested
in shares comprising at least one-fifth of the share
capital of that company
"CREST" the relevant system, as defined in the CREST
Regulations, and the holding of shares in
uncertificated form in respect of which Euroclear is
the operator (as defined in the CREST Regulations)
"CREST Regulations" the Uncertificated Securities Regulations 2001 (SI 2001
No. 3755) (as amended)
"C$" the legal currency of Canada
"Deferred Shares" the deferred shares of 9.5 pence each in the capital of
the Company
"Diluted Enlarged 381,715,728 Ordinary Shares comprising the Existing
Ordinary Share Ordinary Shares, the Subscription Shares, 2,487,499 new
Capital" Ordinary Shares to be issued on full exercise of the
Existing Warrants and 17,959,700 new Ordinary Shares to
be issued on full exercise of the New Warrants
"Disclosure Date" 6 December 2012, being the last practicable date prior
to the publication of this announcement and the
Document
"Document" the circular to Shareholders in relation to the
Proposals including the Notice of General Meeting
"Enlarged Ordinary the issued equity share capital of the Company
Share Capital" immediately following Admission comprising the Existing
Ordinary Share and the Subscription Shares
"Euroclear" Euroclear UK & Ireland Limited, a company incorporated
in England and Wales with registration number 2878738,
whose registered address is at 33 Cannon Street, London
EC4M 5SB
"Existing Ordinary the existing 91,268,529 issued Ordinary Shares as at
Shares" the date of this announcement and the Document
"Existing Ordinary the issued equity share capital of the Company as at
Share Capital" the date of this announcement and the Document
"Existing Warrants" the existing 2,487,499 warrants to subscribe for new
Ordinary Shares owned by Fratelli Investments and Fondo
de Inversion Privado Santa Monica as at the date of the
Document
"Form of Proxy" the form of proxy to be used by Shareholders in respect
of the General Meeting
"Fratelli Fratelli Investments Limited, a company registered in
Investments" the Bahamas with registered number 136,354 B
"FSA" the United Kingdom Financial Services Authority
"FSMA" the Financial Services and Markets Act 2000 of the
United Kingdom (as amended)
"General Meeting" the general meeting of the Company convened for 10.00
a.m. on 16 January 2013, the notice convening which is
set out at the end of the Document
"Greenwood" Greenwood Investments Limited
"Group" the Company and/or its subsidiaries as the context
requires
"IFRS" the International Financial Reporting Standards as
adopted by the International Accounting Standards Board
"Independent the Directors, other than Eduardo Rosselot
Directors"
"Independent all Shareholders other than members of the Concert
Shareholders" Party
"Loan Agreement" the US$6 million loan facility dated 1 October 2012
provided to the Company by Fratelli Investments,
details of which are set out in Part IV of the Document
"Lock-in and the agreement dated 10 December 2012 between (1) the
Relationship Company (2) Beaumont Cornish and (3) Fratelli
Agreement" Investments, further details of which are set out in
Part IV of the Document
"London Stock London Stock Exchange plc
Exchange"
"NCL" NCL Ingenieria y Construccion SA
"New Warrants" up to 17,959,700 new Warrants to subscribe for new
Ordinary Shares at a price of 10 pence per Ordinary
Shares to be issued to Fratelli Investments pursuant to
the Subscription Agreement
"Notice of General the notice of the General Meeting set out at the end of
Meeting" the Document
"Official List" the list maintained by the United Kingdom Listing
Authority in accordance with section 74(1) of FSMA for
the purposes of Part VI of FSMA
"Options" the existing options to subscribe for new Ordinary
Shares, further details of which are set out in
paragraph 2.6 of Part IV of the Document
"Ordinary Shares" the ordinary shares of 5 pence each in the capital of
the Company
"Panel" Panel on Takeover and Mergers
"PEA" the preliminary economic assessment of re-starting
mining operations at Palito prepared by NCL in June
2012 in accordance with the Canadian Securities
Administrators' National Instrument 43-101 - Standards
of Disclosure for Mineral Projects
"PEA Announcement" the regulatory announcement released by the Company on
13 June 2012 setting out, inter alia, details of the
PEA
"Proposals" the Subscription, the Waiver and Admission
"QCA Code" the Corporate Governance Guidelines for Smaller Quoted
Companies published by the Quoted Companies Alliance
"Resolution(s)" the resolutions set out in the Notice of General
Meeting at the end of the Document
"Rule 9" Rule 9 of the Takeover Code
"Rule 9 Offer" the requirement for a general offer to be made in
accordance with Rule 9
"Second Diluted 363,756,028 Ordinary Shares comprising the Existing
Enlarged Ordinary Ordinary Shares, the Subscription Shares and 2,487,499
Share Capital" new Ordinary Shares to be issued on exercise of the
Existing Warrants
"Shareholders" Person(s) who is/are registered holder(s) of Ordinary
Shares from time to time
"Subscription" the conditional subscription by Fratelli Investments to
subscribe for and underwrite a placement of up to
270,000,000 new Ordinary Shares, further details of
which are set out in Part I of the Document
"Subscription the agreement dated 1 October 2012 between (1) the
Agreement" Company and (2) Fratelli Investments, further details
of which are contained in Part IV of the Document
"Subscription Price" 6 pence per Subscription Share
"Subscription 270,000,000 new Ordinary Shares to be issued pursuant
Shares" to the Subscription Agreement
"Third Party Shares" up to 179,597,000 Subscription Shares available for
subscription by third party investors
"TSX" Toronto Stock Exchange
"UK Listing the FSA acting in its capacity as the competent
Authority" authority for the purposes of Part VI of the Financial
Services and Markets Act 2000
"UK" or "United the United Kingdom of Great Britain and Northern
Kingdom" Ireland
"uncertificated" or a share or other security recorded on the relevant
"in register of the relevant company concerned as being
uncertificated form" held in uncertificated form in CREST and title to
which, by virtue of the CREST Regulations, may be
transferred by means of CREST
"United States" or the United States of America, its territories and
"US" possessions, any State of America and the District of
Columbia
"US$" or "US the legal currency of the United States
Dollars"
"VAT" value added tax
"Waiver" the waiver granted by the Panel (subject to the passing
of the Whitewash Resolution) in respect of the
obligation of the Concert Party to make a mandatory
offer for the entire issued share capital of the
Company not already held by the Concert Party which
might otherwise be imposed on the Concert Party under
Rule 9 of the Takeover Code as a result of the issue of
Subscription Shares under the Subscription, as more
particularly described in paragraph 7of Part I of the
Document
"Warrants" the warrants to subscribe for new Ordinary Shares
further details of which are set out in paragraph 2.5
of Part IV of the Document
"Whitewash the ordinary resolution of the Independent Shareholders
Resolution" to be taken on a poll concerning the Waiver to be
proposed at the General Meeting and set out in the
Notice of General Meeting

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